WINNIPEG, Nov. 8 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Friday, bouncing back from previous lows following the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).
The WASDE reported projected ending stocks— including Malaysian palm oil, European rapeseed, and canola—to be the lowest level in 40 years. That was supportive for canola prices.
Canola values were also supported by a relatively weaker Canadian dollar, which was around 75.6 U.S. cents at midday. The dollar has dropped by about a tenth of a cent over the past week.
On Friday, 20,680 contracts were traded, which compares with Thursday when 13,784 contracts changed hands. Spreading accounted for 13,040 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday. Though experts were anticipating soybean production to be revised slightly downward in the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA), others expected production numbers to be bearish, in line with previous forecasted trends.
In the end, soybean production estimates were unchanged in the November report, at 46.9 bushels per acre for a total of 3.55 billion bushels. World soybean carryout was higher than what analysts anticipated, which also weighed on soybean values. Estimated carryout was up by 2.2 million tonnes from last month’s projection, at 95.42 million tonnes. Total production for soybeans remained at 3.55 billion bushels.
A private export sale for 270,000 tonnes of soybeans was announced this morning, purchased by an unknown destination.
CORN futures were stronger today, following revised corn yield estimates. The expected yield was lowered from 168.4 bushels per acre to 167 bushels per acre, which was in line with trade expectations. Challenging growing conditions in the Corn Belt were to blame for the reduced estimates, but the USDA still expects harvested corn acres to total 81.8 million.
Total corn production is expected to be 13.661 billion bushels, down from the 13.779 billion bushels predicted earlier.
WHEAT futures were lower on Friday, despite lowered harvested acres reported in the WASDE. Harvested acres were cut by nearly one million following a re-survey, mainly due to the large amounts of snow that fell in Montana and North Dakota in October. Wheat production estimates were lowered to 1.920 billion bushels, from 1.962 billion bushels. Carryout for wheat was decreased as well, from 1.043 billion bushels last month to 1.014 billion bushels this month.